Supply And Demand Imbalance Drives RV Opportunities, Says Cem Karsan

Cem Karsan, founder and senior managing partner at Kai Volatility Advisors, said secular growth in the volatility space and a limited number of market players ready to absorb liquidity has created a supply and demand imbalance that drives relative value opportunities. Karsan said a second opportunity arises because of the “greater effect” that this imbalance has on the market, and to distribute that liquidity within the options market it must be absorbed into the broader market. “This is causing a lot of directional trading opportunities in the underlying if you understand what that dealer positioning looks like,” he said.